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afari File Edit View History Bookmarks Window Help ? newconnect.mheducation.com ple Disney ESPN Yahoo! gold-soul.la women's sw... .shophearts Cloud Job Description Bing Yahoo Google Wikipedia Chapter 18 Quiz Ortega Inc. has a defined benefit pension plan. On December 31 (t.. Quiz Saved Help Save & Exit Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 97000 shares of $5 par common stock During 2018, Poodle had the following transactions relating to shareholders' equity Issued 23.000 shares of common stock at $6.60 per share Issued 23,000 shares of common stock at $960 per share Reported a net income of $99.000 Paid dividends of $56,000 What is total Paid-in capital at the end of 2018? Multiple Choice 372.600 316,600 $471600 $376100 urExplanation / Answer
Answer to Question 1.
Total Paid-in Capital = Common Stock + Additional Paid-in Capital
Common Stock = (23,000 * $5) + (23,000 * $5)
Common Stock = $115,000 + $115,000
Common Stock = $230,000
Additional Paid-in Capital = (23,000 * $1.60) + (23,000 * $4.60)
Additional Paid-in Capital = $36,800 + $105,800
Additional Paid-in Capital = $142,600
Total Paid-in Capital = $230,000 + $142,600
Total Paid-in Capital = $372,600
Answer to Question 2.
Total Shareholders’ Equity, December 31, 2019 = Ending Other Paid-in Capital Accounts + Ending Paid-in Capital- Share Repurchase + Ending Retained Earnings – Ending Treasury Stock
Ending Treasury Stock = $510,000 – ($510,000 * 50%)
Ending Treasury Stock = $255,000
Value of Treasury Stock issued = $255,000
Treasury Stock issued for $180,000
The difference will reduce Retained Earnings after adjusting Paid-in Capital – Share Repurchase i.e. $37,000 ($255,000 - $180,000 - $38,000)
Ending Retained Earnings = $4,800,000 - $37,000 + $510,000 - $1,320,000 - $680,000
Ending Retained Earnings = $3,273,000
Other Paid-in Capital Accounts will increase by the amount of Stock Dividend.
Other Paid-in Capital Accounts = $5,800,000 + $680,000 = $6,480,000
Total Shareholders’ Equity, December 31, 2019 = $6,480,000 + $3,273,000 - $255,000
Total Shareholders’ Equity, December 31, 2019 = $9,498,000
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